Quote:
Originally Posted by PoolBrews
It's not a penalty, you just have to return the difference. i.e. if you claim a certain income and it says you get $1,700/month in credits, and then at the end of the year your income was higher so the credit should have been $1,600/month, you have to pay the $1,200 ($100 x 12) back when filling out taxes.
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If you fall within the income limits, you not only qualify for a subsidy amount that will lower your monthly premium but you also get lower copays and a lower out of pocket max. Now, if you significantly underestimate your income (maybe you sold stock or a rental property for a $50k capital gain), you will have to pay part of the subsidy back that reduced your premium. This is a fairly straightforward process. However, what about the copays? Maybe you initially had zero copays with the estimated low income and now with the actual higher income, you should have been paying $20 copays all year. These would have been paid directly to the doctors' office or hospital, etc. How are these recaptured or clawed back?